nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2014‒04‒29
fourteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Trust-Based Work-Time and Product Improvements: Evidence from Firm Level Data By Godart, Olivier; Görg, Holger; Hanley, Aoife
  2. The influence of network relationships on the internationalization process of SMEs: A multiple case-study of Ethiopian SMEs By Luuk Rietveldt; Robert Goedegebuure
  3. The impact of R&D subsidies during the crisis By Hud, Martin; Hussinger, Katrin
  4. Patents as quality signals? The implications for financing constraints on R&D By Czarnitzki, Dirk; Hall, Bronwyn H.; Hottenrott, Hanna
  5. Does R&D increase the profit contribution of intangible assets? An exploration of European and American automotive supplierss By Stefan Lutz
  6. International university–industry collaboration and development of high-tech industries in China, 1980s-2000s By Jin, Hua
  7. Competitiveness in the Latin American manufacturing sector. Trends and determinants By Alicia Garcia-Herrero; Enestor dos Santos; Pablo Urbiola; Marcos dal Bianco; Fernando Soto; Mauricio Hernandez; Arnulfo Rodríguez; Rosario Sanchez
  8. Comparing Cluster Policies: An Analytical Framework By Anastasiia Konstantynova; James Wilson
  9. The Trade-off between Innovation and Defence Industrial Policy: A Simulation Model Analysis of the Norwegian Defence Industry By Blom, Martin; Castellacci, Fulvio; Fevolden, Arne
  10. The Lindahl equilibrium in Schumpeterian growth models: Knowledge diffusion, social value of innovations and optimal R&D incentives By Gray, Elie; Grimaud, André
  11. The Effect of Regional Entrepreneurship Culture on Economic Development - Evidence for Germany By Michael Fritsch; Michael Wyrwich
  12. The Effectiveness of Competition Policy: An Econometric Assessment in Developed and Developing Countries By Samà, Danilo
  13. Competitividad del sector manufacturero en America Latina. Tendencias y determinantes By Alicia Garcia-Herrero; Enestor dos Santos; Pablo Urbiola; Marcos dal Bianco; Fernando Soto; Mauricio Hernandez; Arnulfo Rodríguez; Rosario Sanchez
  14. Factores asociados al comportamiento exportador de las PyMES industriales argentinas By Nicolas, Juan Ignacio

  1. By: Godart, Olivier (Kiel Institute for the World Economy); Görg, Holger (Kiel Institute for the World Economy); Hanley, Aoife (Kiel Institute for the World Economy)
    Abstract: We explore whether the introduction of trust based working hours is related to the subsequent innovation performance of firms. Employing a panel data set of over 5,000 German establishments, we implement a propensity score matching approach where we only consider firms that did not use trust based work contracts initially. Our results show that firms which adopt such contracts tend to be between 11 to 14 percent more likely to improve products. These results hold when we control for another form of flexible time work arrangements, namely working time accounts. Thus, the positive relationship between the adoption of trust based working hours and innovation seems to be driven by the degree of control and self-management over working days, rather than by merely allowing time flexibility.
    Keywords: trust based work time, innovation, firm performance
    JEL: M54 M12
    Date: 2014–04
  2. By: Luuk Rietveldt (Lecturer at Utrecht University); Robert Goedegebuure (Associate Professor at the Maastricht School of Management)
    Abstract: The role of network relationships has become topical in research on the internationalization process of firms. Research has focused on the internationalization process of firms in developed nations. This research adds to the literature by looking at the use of network relationships in Ethiopian small and medium sized enterprises (SMEs2) exporting spices, meat and shoes. Propositions are formulated from findings in the literature. Using a multiple case study of three Ethiopian firms, the influence of different networks on the foreign market entry process (FME) was researched. The focus was on the effect of network relations on the foreign market choice (FMC) and market entry mode choice (MEMC). The outcomes show that network relations play an important role in the internationalization. Contrary to expectations, the internationalization of the Ethiopian case firms depended completely on foreign firms initiating contacts and therewith the entrance into foreign markets. The foreign firms also influenced market entry mode choices of the firms under study. None of the firms did market research or had a strategic plan to enter the market, reflecting a reactive approach to internationalization. The vertical network, based on strong formal relations with the foreign product buyers, played a significant role in the foreign market and market entry mode choice. An important finding from the research is the notion that horizontal networks, especially the intermediary role played by foreign country governments and foreign and Ethiopian export organizations, had a big influence in the early stages on the contact relations between the foreign buyer and the Ethiopian exporter.
    Keywords: Network relations, internationalization, sme's (small and medium sized enterprises), foreign market entry, foreign market choice
    JEL: F23 L14
    Date: 2014–04
  3. By: Hud, Martin; Hussinger, Katrin
    Abstract: This study investigates the impact of R&D subsidies on R&D investment during the past financial crisis. We conduct a treatment effects analysis and show that R&D subsidies increased R&D spending among subsidized small and medium sized firms in Germany during the crisis years. In the first crisis year, the additionality effect induced by public support was, however, smaller than in other years. This temporary decrease may be caused by an altered innovation subsidy scheme in crisis years or by a different innovation investment behavior of the subsidy recipients. We do not find support for the countercyclical innovation subsidy scheme having caused the smaller additionality effect and conclude that it is likely to be driven by subsidy recipient behavior. --
    Keywords: R&D,Subsidies,Policy Evaluation,Financial Crisis,Treatment Effects
    JEL: C14 C21 G01 H50 O38
    Date: 2014
  4. By: Czarnitzki, Dirk; Hall, Bronwyn H.; Hottenrott, Hanna
    Abstract: Information about the success of a new technology is usually held asymmetrically between the research and development (R&D)-performing firm and potential lenders and investors. This raises the cost of capital for financing R&D externally, resulting in financing constraints on R&D especially for firms with limited internal resources. Previous literature provided evidence for start-up firms on the role of patents as signals to investors, in particular to Venture Capitalists. This study adds to previous insights by studying the effects of firms' patenting activity on the degree of financing constraints on R&D for a panel of established firms. The results show that patents do indeed attenuate financing constraints for small firms where information asymmetries may be particularly high and collateral value is low. Larger firms are not only less subject to financing constraints, but also do not seem to benefit from a patent quality signal. --
    Keywords: Patents,Quality Signal,Research and Development,Financial Constraints,Innovation Policy
    JEL: O31 O32 O38
    Date: 2014
  5. By: Stefan Lutz (Royal Docks Business School, University of East London)
    Abstract: Economic theory implies that research and development (R&D) efforts increase firm productivity and ultimately profits. In particular, R&D expenses lead to the development of intangible assets in the form of intellectual property (IP) and these assets command a return that increases overall profits of the firm. This hypothesis is investigated for the North American and European automotive supplier industries. Results indicate that R&D expenses in fact increase both intangible asset levels and their profit contributions. In particular, increases in the R&D expense to sales ratio lead to increases in the profit contribution of intangible assets relative to sales. This indicates that more R&D intensive IP should command higher royalty rates per sales when licensed to third parties and within multinational enterprises alike.
    Keywords: Productivity; Intellectual property; Royalties; MNE; Transfer pricing.
    JEL: D24 L20 L62 M21
    Date: 2014–02
  6. By: Jin, Hua
    Abstract: In this study, we explore collaboration between universities and industrial entities in the development of Chinese high-tech industries from the 1980s to the 2000s. For developing countries, the creation and cultivation of high-tech industries can be the key to economic development in a globalized era. Since the 1980s, China has served as an example of one of these developing countries. In attempting to create and develop high-tech industries in China, the Chinese government has long promoted university-industry collaboration. As a result, the Chinese government has been widely considered as the catalyst behind the development of university-industry collaboration. However, our analysis demonstrates that there are multiple proponents that have advocated multiple paths to successful university-industry collaboration in China.
    Date: 2014–04
  7. By: Alicia Garcia-Herrero; Enestor dos Santos; Pablo Urbiola; Marcos dal Bianco; Fernando Soto; Mauricio Hernandez; Arnulfo Rodríguez; Rosario Sanchez
    Abstract: After analysing the evolution of exports from the large Latin American countries over the last decade, and examining on a case by case basis the determinants for each country’s performance, this study concludes that competitiveness in the manufacturing sectors of most countries in the region went down from 2007 to 2012, after relatively favourable progress in the previous five-year period between 2002 and 2007. This recent deterioration, which has been more noticeable in countries such as Brazil and Colombia, is related to the real exchange rate appreciation, high labour costs and insufficient progress in labour productivity. The main exception to these regional trends is Mexico, where gains in the manufacturing sector’s competitiveness continued beyond 2007, partly because the exchange rate stayed relatively depreciated and labour costs, as well as work productivity, performed better than in the South American countries. However, from 2011 onwards, the reversal of these trends has been making it difficult for the Mexican manufacturing sector to gain competitiveness. Case studies of each of the region’s main countries show that in general the exchange rate, labour costs and work productivity were the main determinants in the evolution of manufacturing competitiveness in the last decade. In fact, the countries and periods where these variables performed poorly coincide with losses of market share in international trade and deteriorating competitiveness. Nevertheless, the impact of the remaining variables affecting the manufacturing sector’s competitiveness is not insignificant either. In fact, gains in competitiveness have been greater (and losses in competitiveness smaller) in Chile and Peru, where the institutional framework has improved and logistics and energy costs reduced or kept under control.
    Keywords: competitiveness, Latin America, manufacturing, exports
    JEL: F10 L60 O14 O54
    Date: 2014–03
  8. By: Anastasiia Konstantynova; James Wilson
    Abstract: This working paper is a part of the dissertation research and is determined to outline and deliver key triggers of a successful regional cluster policy. It first makes a broad reflection on the theory of cluster and cluster policy concepts and subsequently focuses on elaboration of an analytical scheme for policy analysis. The development of the framework is proceeded into two steps, first of all the stages of cluster policy process are defined. After that key factors affecting policy building are selected from various existing theoretical and practical cluster policy cases and later on attributed to a particular stage of cluster policy. The advantages of the designed analytical approach are in its ability to offer a deeper and more comprehensive view on different cluster policies while making comparisons and generating policy learning. Finally the framework can also be applied as a toolbox for policy makers keen to identify strengths and weaknesses in their cluster policies.
    Keywords: cluster policy; regional policy; cluster theory; comparative policy studies
    JEL: R58 L52
  9. By: Blom, Martin; Castellacci, Fulvio; Fevolden, Arne
    Abstract: The paper investigates the trade-off between innovation and defence industrial policy. It presents an agent-based simulation model calibrated for the Norwegian defence industry that compares different policy scenarios and examines the effects of a pending EU market liberalization process. The paper points to two main results. (1) It finds that a pure scenario where national authorities focus on, and provide support exclusively for, either a) international competitiveness or b) national defence and security objectives, is more Pareto efficient than a corresponding mixed strategy where policy makers simultaneously pursue both international competitiveness and defence and security objectives. (2) Under the conditions of the new EU liberalization regime, a stronger and more visible trade-off will emerge between international competitiveness and national defence and security objectives. Policy makers will have to choose which to prioritise, and set a clear agenda focusing on one of the two objectives.
    Keywords: Innovation policy; industrial policy; defense industry; EU liberalization; agent-based simulation model
    JEL: C6 H0 L1 O3
    Date: 2014
  10. By: Gray, Elie; Grimaud, André
    Abstract: What is the social value of innovations in Schumpeterian growth models? This issue is tackled by introducing the concept of Lindahl equilibrium in a standard endogenous growth model with vertical innovations which is extended by explicitly considering knowledge diffusion. Assuming that knowledge diffuses on a Salop (1979) circle allows us to formalize the creation of the pools of knowledge in which research and development (R&D) activities draw from to produce innovations. Within this model, we compare two equilibria. The standard Schumpeterian equilibrium à la Aghion & Howitt (1992) is mainly characterized by incomplete markets since knowledge is not priced. It provides the usual private value of innovations. The Lindahl equilibrium is a benchmark enabling us to compute the system of prices that sustains the first-best social optimum, and thus to define and to determine analytically the social value of innovations. It provides a suitable methodology for revisiting issues involving the presence of knowledge, often studied in the industrial organization and endogenous growth literatures. This comparison sheds a new light on the consequences of non-rivalry of knowledge and of market incompleteness on innovators’ behavior in the Schumpeterian equilibrium. We notably revisit the issues of Pareto sub-optimality and of R&D incentives in presence of cumulative innovations. Basically, the key externality triggered by market incompleteness implies that knowledge creation is indirectly funded by means of intellectual property rights on rival goods embodying knowledge. Therefore, because the private value of innovations differs from the social one, innovators are not given the optimal incentives.
    Keywords: Schumpeterian growth theory - Lindahl equilibrium - Social value of innovations - Pareto sub-optimality - Cumulative innovations - Knowledge spillovers
    JEL: D52 O31 O33 O40 O41
    Date: 2014–01
  11. By: Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Wyrwich (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: We use the historical self-employment rate as an indicator of a regional culture of entrepreneurship and link this measure to economic growth in recent periods. The results indicate that German regions with a high level of entrepreneurship in the mid- 1920s have higher start-up rates about 80 years later. Furthermore, we find that the effect of current start-up activity on regional employment is significantly higher in regions with a pronounced entrepreneurial culture. We conclude that a regional culture of entrepreneurship is an important resource for regional growth.
    Keywords: Entrepreneurship, economic development, self-employment, new business formation, entrepreneurship culture, institutions
    JEL: L26 R11 O11
    Date: 2014–04–17
  12. By: Samà, Danilo
    Abstract: The ultimate objective of the present paper is to empirically investigate the effectiveness of competition policy in developed and developing countries. Although its importance is continuously increasing, the effectiveness of competition policy still seems to lack the attention that it would deserve. At the present state of art, the number of academic contributions that attempts to estimate its impact on relevant economic variables appears very limited, in particular for the less developed countries. However, an empirical literature aimed at measuring in objective terms the effect of competition policy on economic growth is emerging, starting from narrow variables of interest, such as Gross Domestic Product and Total Factor Productivity. As a result, the principal aim of the current work is to contribute to this branch of research, focusing on broader indicators of market performance, in order to understand whether the presence of an antitrust authority has a significant impact, thus an effective utility, on the level of competition of a country.
    Keywords: Competition Authorities, Competition Policy, Developed Countries, Developing Countries, Economic Development, Economic Growth, Law & Economics, Market Concentration, Market Efficiency, Market Performance, New Institutional Economics, Political Economy
    JEL: C21 C26 K21 L40
    Date: 2013
  13. By: Alicia Garcia-Herrero; Enestor dos Santos; Pablo Urbiola; Marcos dal Bianco; Fernando Soto; Mauricio Hernandez; Arnulfo Rodríguez; Rosario Sanchez
    Abstract: Tras analizar conjuntamente la evolucion de las exportaciones de los principales paises latinoamericanos en la ultima decada y examinar caso a caso los determinantes del desempeno de cada país, este estudio concluye que la competitividad del sector manufacturero en la mayoria de los paises de la region ha disminuido a partir de 2007 hasta el 2012, despues de evolucionar de manera relativamente favorable entre el 2002 y el 2007. Este deterioro reciente, que ha sido mas marcado en paises como Brasil y Colombia, esta relacionado con el mantenimiento de un tipo de cambio real apreciado, elevados costes laborales y un insuficiente avance de la productividad de la mano de obra. La principal excepcion a estas tendencias regionales es Mexico, donde las ganancias de competitividad en el sector manufacturero continuaron mas alla de 2007, en parte porque el tipo de cambio se mantuvo relativamente depreciado y los costes laborales, asi como la productividad del trabajo, presentaron un desempeno mas favorable que en los paises de America del Sur. Sin embargo, a partir del 2011 la reversion de estas tendencias esta dificultando las ganancias de competitividad del sector manufacturero mexicano. El estudio de caso de cada uno de los principales paises de la region muestra que, en general, el tipo de cambio, los costes laborales y la productividad del trabajo fueron los principales determinantes de la evolucion de la competitividad manufacturera en la ultima decada. De hecho, los paises y periodos donde estas variables presentaron un desempeno desfavorable coinciden con perdidas de cuota de mercado en el comercio internacional y deterioro de la competitividad. Sin embargo, el impacto de las demas variables que afectan la competitividad del sector manufacturero tampoco es despreciable. De hecho, las ganancias de competitividad han sido mayores (y las perdidas de competitividad, menores) en Chile y Peru, donde se ha logrado mejorar el entorno institucional y reducir o mantener bajo control los costes logisticos y los costes energeticos.
    Keywords: competitividad, America Latina, manufacturas, exportaciones
    JEL: F10 L60 O14 O54
    Date: 2014–02
  14. By: Nicolas, Juan Ignacio
    Abstract: El objetivo general de la presente investigación es indagar acerca de los factores asociados al comportamiento exportador de las pequeñas y medianas empresas (PyMES) industriales argentinas. Para ello, se procura identificar los diferentes factores que operan en los distintos niveles (microeconómico y sectorial), y que inciden en el comportamiento desigual que muestran las PyMES frente a su inserción en los mercados extranjeros. En esta tesis, se utiliza un modelo de regresión logística que permite estimar la probabilidad de que una PyME industrial argentina oriente su producción, o parte de la misma, hacia los mercados externos. Así, los resultados obtenidos ponen de manifiesto que la probabilidad de que una PyME exporte es mayor si la firma posee certificaciones de calidad y/o gestión de su proceso productivo, presenta elevados niveles de productividad y si se realizan actividades innovativas. Conjuntamente, para el caso de las PyMES industriales argentinas, un mayor tamaño de la firma también eleva la probabilidad de que exporten. Por último, también se observa incidencia de los condicionantes sectoriales, ya que la probabilidad de exportar por parte de las firmas varía de acuerdo a la rama de actividad industrial en la que se desempeñan.
    Keywords: Pequeñas y Medianas Empresas; Empresas Industriales; Exportaciones; Comercio Internacional; Argentina
    Date: 2014

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